Washington, D.C. – In a major move aligned with President Donald Trump’s America First economic agenda, Sen. Roger Marshall (R-KS) has introduced legislation that would eliminate federal income taxes on overtime pay—a policy Trump promised on the campaign trail and is now one step closer to becoming law.
This new conservative tax reform proposal is designed to boost middle-class paychecks and reward hard-working Americans who put in extra hours.
🔹 Key Highlights of the Overtime Tax Relief Plan:
- No federal income tax on overtime earnings up to $10,000 for individuals and $20,000 for married couples
- Available to taxpayers earning up to $100,000 (single) or $200,000 (married)
- Potential savings of up to $4,400 annually at the 22% tax bracket
- Includes an above-the-line deduction, so workers benefit even if they don’t itemize
- Applies only to time-and-a-half overtime pay, ensuring fairness and targeting true wage earners
“This bill puts more money directly into the hands of working Americans—and honors President Trump’s commitment to the working class,” said Sen. Marshall.
✅ Part of a Broader Pro-Worker, Pro-Growth Republican Tax Package
Marshall’s plan is just one part of a sweeping GOP tax package being built around President Trump’s 2025 vision. This “one big, beautiful bill” seeks to:
- Extend the 2017 Trump tax cuts
- Eliminate taxes on Social Security benefits
- Provide tax-free tips for service workers
- Lower taxes for domestic manufacturing
- Offer deductions for buying American-made vehicles
📊 Fiscally Conservative, Smartly Targeted
While liberal think tanks have warned the plan could cost up to $1.3 trillion, Marshall’s income and benefit caps are projected to cut those costs by up to 75%, according to the Yale Budget Lab.
“We’re keeping this affordable by targeting the relief to middle-income Americans—the backbone of this country,” Marshall noted.
Only 8% of hourly and 4% of salaried workers regularly earn overtime pay, according to data—making this a focused and responsible tax break that directly rewards effort.
🔔 Other Key Republican Tax Proposals for 2025:
- Seniors Win Too: Rep. Nicole Malliotakis (R-NY) has introduced a plan to raise the senior deduction to $5,000 for individuals and $10,000 for couples, up from current limits.
- Trump Pushes to End Taxes on Social Security—though reconciliation rules currently block this without bipartisan support.
- Cruz & Buchanan Plan Alternative Overtime Relief—with a $25,000 limit but stricter income caps.
🇺🇸 Bottom Line: Trump and Republicans Are Putting America’s Workers First
President Trump’s 2025 economic plan is delivering on promises that matter: cutting taxes, rewarding hard work, and protecting retirement.
Sen. Marshall’s proposal shows Republicans are serious about reducing the IRS’s reach into workers’ overtime paychecks—and giving families across America more breathing room in this tough economy.
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